Peru’s Petroperu to invest in petchem complex, refinery upgrade

02 February 2012 23:31[Source: ICIS news]

BOGOTA (ICIS)--Peru's state-run oil company Petroperu will invest $2.3bn in a petrochemical plant and an upgrade to the Talara refinery as the firm expands in the fast-growing economy, the company said on Thursday.

Petroperu and Braskem will invest $3bn (€2.3bn) in a new petrochemical complex that utilises the ethane content of natural gas from Camisea gas fields, Petroperu’s president Humberto Campodonico said.

The Peruvian treasury will provide 20% of the total investment, or $600m, while Brazil's Braskem will finance the remaining amount.

Petroperu and Braskem signed a memorandum of understanding to study the viability of an integrated polyethylene (PE) complex, the Brazil-based plastics producer said on 25 November.

Under the deal, the companies will study the viability of a 1.2m tonne/year PE and ethylene complex that would use ethane as a feedstock, Braskem said in November.Braskem has said the plant could open in six or seven years.

Petroperu is also moving forward with a $1.7bn investment in the Talara refinery on Peru's north coast, Campodonico said.

Peruvian President Ollanta Humala wants Petroperu to start producing oil, an activity it stopped during a privatization drive in the 1990s, and model itself after bigger state-run companies like Ecopetrol in Colombia and Petrobras in Brazil.

The project includes the expansion and modernization of existing units and installation of new units to process heavy crude oil and increase the refinery’s production from 65,000 to 95,000 bbl/day, Campodonico said.

The Talara refinery is expected to start by June 2016, Campodonico said.